U.S. court revives antitrust suit on music downloads

Daily Legal News

U.S. court revives antitrust suit on music downloads


The U.S. Second Circuit Court of Appeals in New York said a lower court judge erred in dismissing the complaint alleging violations of the federal Sherman Act in October 2008.


Among the named defendants in the case are Bertelsmann AG, EMI Group, Sony Corp, Time Warner Inc, Vivendi SA and Warner Music Group Corp or various affiliates.


The plaintiffs contended that record labels entered into joint ventures and licenses that had the effect of creating artificial price floors for downloaded music.


They also said that when competitors started to distribute the labels' music, the defendants "agreed" to a wholesale floor of about 70 cents per song, which were enforced in part through restrictive license agreements.


Writing for a three-judge panel, Circuit Judge Robert Katzmann said the plaintiffs' allegations are "sufficient to plausibly suggest" a conspiracy to fix prices.


Noting that the defendants control more than 80 percent of digital music sold to U.S. purchasers, the judge pointed to one commentator who concluded that "nobody in their right mind" would want to use two of the music services at issue.


He said this suggested "some form of agreement among defendants


Related listings

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.